Museums, Zoos and Parks NAICS 7121

May 28, 2026 - Budget Shifts Raises Park Concerns

• According to a report in Outdoor Life, the Trump administration’s proposed 2027 budget would cut National Park Service (NPS) operations funding by more than 25% ($736 million) while directing billions toward beautification projects in Washington, DC, raising concerns across the US parks sector. A $17.4 million no-bid fountain restoration contract in Lafayette Square alone exceeded earlier estimates by roughly $12 million. Meanwhile, the NPS faces a 24% reduction in full-time staff after DOGE-era cuts, with another 3,000 permanent jobs proposed for elimination. Critics warn the cuts could worsen a deferred maintenance backlog affecting 433 national parks and historic sites, reducing visitor services, conservation work, education programs, and wildlife management. Supporters argue DC restoration projects support tourism and national celebrations, but advocates say shifting resources away from parks and cultural institutions risks long-term impacts on public access and preservation.
• Museums, zoos, and parks operators saw conditions remain relatively stable in April even as the broader services sector expanded at a slower pace, according to the latest ISM Services PMI Report. The ISM Services PMI Index registered 53.6%, marking the services economy’s 22nd straight month of growth, while Arts, Entertainment & Recreation was specifically cited among industries experiencing rising prices. The category was not listed among industries reporting either growth or contraction in business activity, new orders or employment, suggesting performance lagged stronger service sectors such as accommodation and food services. However, operators continued facing elevated costs tied to fuel, transportation, and labor, contributing to the ISM Prices Index holding at 70.7%, its highest level since 2022. For museums, zoos and parks, the report points to steady visitor demand but increasing pressure on operating margins and event-related expenses.

• Funding pressure remains the clearest takeaway for museums, according to the Art Museum Director Survey 2025 by the American Alliance of Museums. In the survey, 76% of art museum directors cited lack of financial resources as their top constraint, and 45% expressed high confidence in securing ongoing funding, lower than for other operational areas. Directors now spend an average of 23% of their time on fundraising, grant writing, and donor engagement. At the same time, institutions remain focused on public service: 96% prioritize educational programming, and 94% prioritize serving as a trusted source of information. Labor costs also remain important, with 92% prioritizing livable wages and 79% citing comparable pay as a five-year priority. For museums, the findings suggest continued mission strength, but rising pressure to diversify revenue, strengthen donor support, and balance public programming with staffing and financial sustainability.
• The National Park Service (NPS) will introduce higher fees for foreign visitors starting January 1, 2026, as part of an effort to strengthen park funding, according to a report by Spectrum News. The policy applies a $100 surcharge for international visitors at 11 of the most visited national parks, including Yellowstone and the Grand Canyon, and increases the foreign annual pass to $250, while the US annual pass remains unchanged at $80. Supporters estimate the changes could generate hundreds of millions of dollars to help address the system’s maintenance backlog. The policy also presents potential visitation risks. The US is projected to be the only country among 184 surveyed to experience a decline in foreign visitor spending in 2025, raising concerns that higher fees could further dampen demand. NPS leadership, however, expects total visitation to rebound in 2026, supported by increased travel tied to the nation’s 250th anniversary celebrations.